Jun 30, 2023

Allbirds Q2 2023 Earnings Report

Exceeded Q2 2023 guidance targets and delivered continued progress under the company’s strategic transformation plan.

Key Takeaways

Allbirds reported a 9.8% decrease in net revenue to $70.5 million compared to the previous year, but showed a 3.8% increase compared to Q2 2021. The company experienced a net loss of $28.9 million, or $.19 per share. However, it significantly reduced operating cash use and generated positive operating cash flow of $0.8 million. Gross margin increased to 42.8% compared to 36.1% in the second quarter of 2022.

Net revenue decreased 9.8% to $70.5 million versus a year ago and increased 3.8% compared to Q2 2021

Gross profit totaled $30.1 million compared to $28.2 million in the second quarter of 2022, and gross margin increased to 42.8% compared to 36.1% in the second quarter of 2022.

Ending inventory decreased 24% versus a year ago and represented the lowest level since Q2 2021

Generated positive operating cash flow of $0.8 million compared to negative operating cash flow of $24.1 million a year ago.

Total Revenue
$70.5M
Previous year: $78.2M
-9.8%
EPS
-$3.8
Previous year: -$2.4
+58.3%
Gross Margin
42.8%
Previous year: 36.1%
+18.6%
Gross Profit
$30.1M
Previous year: $28.2M
+6.9%
Cash and Equivalents
$140M
Previous year: $207M
-32.5%
Free Cash Flow
-$3.74M
Previous year: -$32.4M
-88.4%
Total Assets
$406M
Previous year: $429M
-5.3%

Allbirds

Allbirds

Allbirds Revenue by Geographic Location

Forward Guidance

Allbirds is providing financial guidance for the third quarter of 2023, reflecting ongoing work under the Company’s strategic transformation plan.

Positive Outlook

  • Net revenue of $56 million to $61 million

Challenges Ahead

  • Net revenue decrease of 23% to 16% versus the third quarter of fiscal 2022.
  • Adjusted EBITDA loss of $23 million to $20 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income